mean that sincerely. we love hearing from you. good night from new york. neil: so many storms s little time, am neil cavuto. i want to show you what is happening in northeast right now, particularly new york metro poll lynmetropolitan area. this is long beach, new york, no matter where you go, have you snow, rain, and what could be 60-mile per hour winds, one week after sandy. we get another mother nature dandy, all this descending on an already beleaguered big apple. that really can't dig out of the co for a storm, some say will add up to $50 billion across the

east coast. on a day money was hard to find. better than 312 point tumble in dow jones. today, fox news chief meteorologist, rick, you told me this was coming, i said come on. >> this i the same area that got hit by sandy last week, wire about 9 days out. we still have people without power, now a cold, snowy wet day, adding insult to injury, snow from new york city to central jersey, now across parts of connecticut, i think it will weaken about 4 hours or so of snow across nrthern parts of jersey, the timeline, moving forward to about:00 a.m., we see is begin to bind wind down

or begun for much of jersey. the wind will ease quickly, a lot of people who are flying tomorrow, may be able to flying and the relief efforts will be able to continue torrow, those people who have been without power for so long will not have as much wind to deal with. but it will be a cold one, maybe about an inch or so more accumulating in new york city, by the time ts is done. a bullseye of 5 or 6 inches, we had a place in connecticut with between ache 6 to 8 inches of s, temperatures in 30s right now, tomorrow, a very cold day for everyone, there is one little bit of bright news, that is the temps will warm up behind this.

by sunday, i think a lot will see 60-degree readings. neil: in the meantime, you are trying to get us sick as well with up and down, and up and down. >> you got it. neil: to other storm, financial storm, stocks swooning, a huge day drop off, a lot on this important cliff you heard about. remember we said, when election of out of way, everyone would focus on the other problem, all these expiring bush tax rates, all these pending sequesting a cuts they kick insame minute, same day, end of the year, then it all hits the pro verbal fan. we were warning this was coming way before the election, now a lot of other news network have

woken up, saying, oh, we forgot about the financial armageddon. i guess first signal came for john boehner who was open to revenues, b that, taxes, let the kabuki theater begin. >> it did. you know hours after president obama secured reelect, top congressional democrat, harry reid reaffirmed democrat tax agenda, those makg more should pay more. >> people who make more than a million dolrs a year, the vast majority of them are happy to pay that. only place that people disagree are republican in congress. >> repter: he and democrats, namely the president, want a tax increase on families earning more than $250,000 a year, reed hemmed a series of votes this year on only income of more than a million dollars. meanwhile, house speaker john

boehner unprompted said that republicans are willing to spam examine more tax revenue. >> for the purposes of forging a bipartisan agreement that begins to solve the problem, we're willing to accept new revenue under the right conditions, what matters is where the increased revenue comes from and what type of reform comes witht. >> reporter: those conditions broad-based individual tax reform, republican aide tells fox business, boehner said that last night's elect results are no mandate to raise taxes, americans also reelected a republican house, as for how much and what type of revenue, they would agree to is part of this overhaul of tax code, which is very much in the air. neil: the debate is oand time it is running out, for posh days, thank you -- 54 days. >> and now to john, you know what we're facing here, right

now, moody's threatening a ground grade if they d't get theirable together ac together d imagine more than just cobbling a deal. >> if you look at balance sheet. of the income of the u.s. like a business, we have a negative net worth. we're running a $1.1 trillion operating deficit. neil: what would be a solution. i found it interesting tay, john boehner said, he mentioned revenues, now, you know, he can be kind of mamby pamby about it, that can include a formal tax hike. or cutting.

like ronald reagan did it. it is a t hike for those who benefit from it i think it was a best a event to see john boehner say we'll put that on the table. what are we to make of that and what democrats might offer in return? >> i don't know how to judge what the democrats will offer, if you go backo what romney was talking about, a flatter tax with less deductions. so you don't have such a manipulated system with all kind of loopholes that do not make economic sense. i would say this too. looking at economic growth, the real issue is distribution of revenue between governments and private sector, producing more jobs and mor well being that means you maybe we need to do something with tax code, but we need to reduce spending first,

that is our problem, spending is such a high level, relative to total revenue of u.s. is keeping us from growing. neil: like you said, the way to fix this is grow out of it, and way to grow out of it is find a way toke pan --o expand that tax base, god bless him, mitt romney was trying to do that, now to point we have half paying no income taxes, that is the drag. >> neil, too, attitude matters. i think, what happened to stock market today, a lot of business people were hoping that regulatory attack on business would end, there is a physical issue and a monetary issue, and regulatory issue, which stifles innovation, and creativity. neil: no signs or hints today that as stopped.

john elson thank you. >> and all right, there are things like benghazi, and what president wants to do on immigration, we could be held up on hearings in court, how does an attorney general in the administration handle that? we thought we would check with ed meese. he was ronald reagan's attorney general. >> and then he herman cain's reaction. was it a failure of the conservative message or was there no conservative message. there no conservative message. heherman the capital one cash rewards card gives you 1%ash back on all purchases, plus a 50% annual bonus. and everyone...but her likes 50% more cash. but i'm upping my game. do you want a candy cane? yes! do you want the puppy? yes! do you want a tricycle? yes! do you want 50 percent more cash? no!

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neil: not so peaceful after the election, presidency is still in democratic hands, sene is in

democratic hands, house of represents is still very much in republican hands, that is where you find one darrell issa trying to get to the bottom of what happened in benghazi, libya. and his same office is looking into all sorts of immigration issu, and what obama administration is trying to hoist to states like arizona, needless to say, is could be allterm coming up, how do you handle that? who better to ask than former attorney general, one of the best this country had, ed meese, good to have you back. >> thank you, good to be with you. neil: you know, i'm not here to judge even the soundness of the challenges. but we'll sea lot of them, whether you were dealing with thisnd ronald reagan days, how

do you go about doingior business and keeps the administration on focus when everyone is sort of going and side tracking what you are doing? >> i think it takes first of all, a steady hand and a good represent our between rapport between the had the and attorney general, a team of people to handle whatever legal cas, you go through legal process, recognizing you on a dua due cl. one the president who is your superior. then two. the people of the u.s.,. neil: all of this litigation, dies down, you are a better student of the washington ways,

i think if anything darrell issa will be more emboldened to track down what happened in benghazi, are we going to look at a very, very divisive hearing in tins period in washington? >> well i think it will is possible, depends on what happens. if the president is forthright, and explains to the congress, what happened in benghazi, right now it looks like they are kind of giving a number of different stories, and i think that will only necessarily mean that congress will probably have to take more time, have more hearings, and legal action. neil: is it limited, when hearings are limited to the house? senate playing along. is it a limit to what the house can do by itself? does this die in the vine? >> no. neil: oh, extend to other issues

like "fast and furious" and on and on. >> sure, the "fast and furious" inquiry is going on. it possibl there could be othe that relate to be benghazi, have you quite a part from this a good deal of litigation already concerning the contraception ruling of the department of health and human services, that is already in the courts, in several courts. neil: you know, ed, i have a theory on president's second terms whether their own doing or just, you know fluke of events, second terms are problematic for your boss, ronald reagan with the iran ctra and we saw it with richard nixon and watergate, when it fell out of bed, almost, immediately after he was reelected. i am wondering whether there will be the same sort of drip, drip, drag, drag away -- weighing down? >> it is hard to tell.

right now, but i kkow that ronald reagan made it easier on everyone by saying there would be no executive privilege, everyone to testify honestly, and he tried to facilitate the inquiry rather than obstructt. neil: he addressed nation on it, that was a rare concept at the time. do you get a sense though, lou dobbs and i were getting this last night, the better angels that could inspire president to no longer obstructed by another race or anything to answer to the public, you can rise above e fray and be a better president, a lot of 6 term presidents try that -- second term presidents have tried, that what are barack obama's chances to short of be a bigger president in the second term? >> i think he would have that opportunity, but he would have

to change things from the first term, for example, "fast and furious" investigation, has bee blocked, by the president himself, by giving executive privilege, and by department of justice. that is only prolonged that particular thing. until curre time and it is still pending. neil: i think that this presidencies it as annoying and little bitly driven -- politically driven, maybe he does not care, i could be wrong. ed meese thank you. >> thank you. neil: we've been talking about a possibility of a fiscal cliff, what if i told you this things dragged and, and at the end of the year, jobs fall you of the the year, jobs fall you of the cliff, and it all falely. but because of business people like you,

things are beginning to get rolling. and regions is here to help. making it easier with the expertise and service to keep those wheels turning. from business loans to cash management, we want to be your partner moving forward. so switch to regions. and let's get going. together. so, which supeast 4g lte service would yochoose, based on this chart ? don't rush into it, i'm not looking for the fastest answer.

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neil: if you a business, and you are unsure what is going on in the future, would you hire in this environment? the closer we get to the deadline, more than likely it looks like they will cobble something together. that is looking more and more likely that companies just keep their wallets closed, and then what? >> well, we had largest drop in stock market today that we've had all y year, because yesterdy status quo won, that status quo, has a situation where are running trillion dollar

deficits, 16 trillion in debt and a fiscal cliff coming in a couple months, everyone is saying, we need fundamental reform, we have to deal with government spending. neil: i think refor was rejected. reforming the financial system, reforming the budget process, was not a top priority on american's minds when they want to continue with what we have, i don't know how more discouraging that could be. i am not surprised they sold off like they did. >> well, i don't think reform was rejected yesterday. neil: i hope you are right, but i don't know. >> i think that -- absolutely not, because i think this american people, need reform to happen, we need spending to come in line. neil: someone has to blink, many arg. >> you no. neil: let me ask you many argue that speaker john boehner did

causquasi blink. they have 54 days to do it. >> you hav both sides saying we need to cut spending and raise revenue, the issue is rates or reform, businesses, cannot withstand more and higher rates, we have the highest tax rates in the world for corporation, we can take all money of wealthy people. this the country that would only run the country for a few weeks. >> let's say compromise, get rid of credit, and allowances would that be tolerable to a lot of your ceo friends? >> i think that is what the ceos are saying, we are run committee for economic development. with three endorsement campaigns, everyone says fine raise more revenue, but there needs to be a plan but not

through rates, then you destroy growththat is the issue, we need a pro-growth policy, only way to deal with tax reform in a way that flattens it, reduces loophole. >> i just don't see it. you are far more plugged into this stuff, than i am, i do not see the will on part of president this argued fairness. on rich paying more, and dismissing fact this 47% pay no income tax. >> i know. neil: i am not saying all 47% are just suck ups to the government, but i am saying something is wrong in the system when is grown to that number. that half pay no federal income tax, and presidencies only way to fix it so to stick a higher bill on those who do pay. >> and math does not work. neil: right. >> if you raise taxes on the top 1% so to speak, have you remember 3/4 of them are small

siness 2/3 of jobs this this country are created by small businesses, you will kill jobs, if you raise rates, that does not look. we have to go back, and use those as starts pointing they are bipartisan starting points, you have seen speaker boehner come out, i think there is no chip stocks are i think that the lame duck congress is the wrong place to do it it will happen beyond that, they have to take measures today, but fundamentay, you cannot get there without some fundamental reform, i think it has to happen. neil: it might be like the cart before the horse deal, you agree to parameter, they extent everything to new year you work on it we'll see, steve thank you very much. >> thank you. neil: you know steve was a big backer of mitt romney so was her man cain, the former presidential candidate on what happened.

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neil: half way in, here is herman cain's biggest worry about barack obama, he will go in full spending throttle. so, herman, in your case, hop not springing eternal. first off your reaction to mitt romney's loss. what t nation seems to be saying about picking barack obama. >> president obama ran a popularity campaign. mitt romney ran a subtan campaign. -- substance campaign, enough people voted for popularity over substance, they looked past. unemployment rate, weak economy,

they looked past the benghazi cover-up, they looked past broken promises and basically president obama won a lot of people, or kept a lot of people based on popularity, mitt romney's campaign go the stronger on substance as he went further into the campaign, i was pleased with that. it was simply popularity, versus substance. now going forward. there is no doubt in my mind, bad on having talked to over 2000 be owners in last two months, to encourage them to talk to their employees, they have indicated to me, that numb one, many will have to shut dunn their businesses, they cannot afford obamacare, and they cannot afford tax ma -- >> the president i think really wants greater things of himself, and maybe to my colleague lou

dobbs' point, a more historic role than we've seen first term, there is maybe not a fear, maybe he rolls back in fear? or rolls back regulation that businesses and guysike have you been saying before, mayaybe that fear could be misplaced what do you say? >> nile, you know i love you like a brother. but i do not aee. because this is the same president who said in his first year in office, that he would focu on j creation with a laser, and get the budget under control. and he did not do therg one. either. neil: one of us sounds like a lover, the other a hater. is their big fear of your business colleagues that president is uncumbered, do whatever he wants.

i think he is smart enough to know, he essentially split the popularote, it is not a mandate. what does he do with that? >> he does with that neil, is what scares the business owners most, whatever he wants to do, but his agenda does not match the people's agenda. remember this is the same president that shoved obamacare down the throats of the american people what all of polls showed that the american people, did not like this solution. neil: but, i looked at those polls in the swing states, they liked healthcare. they liked it imnot saying by overwhelming margins issue but in wisconsin, michigan, pennsylvania ohio, florida, virginia, that is surprising, but health care, in the end, i think virginia was closest as far as like and kiss lik you dislike but it was likwe like it.

good stuff came up front, and bad stuff is about to hit us in the you know what next year, but they looked it that shocked me. >> in some of those states you are right, but i'm talking national poll, that said, we do not like that solution, yes something does need to be done about rising costs, and rising costs of health care, but that is not the solution they wanted this president, used the power of the bully pulpit to get members of the house to walk the blank, they did, and some did not come back that isomething he wanted to force through. so, here is what business owners are afraid of. he has his agenda with green energy crowd, we have already wasted bilillions of dollars but he will continue to try to push that, and continue to rl out obamacare. and there is still so much hidden stuff. he will try to force john

boehner and the republicans into agreeing to something temporarily. extending bu tax cuts, i mentioned you to last week, that biggest uncertainty is making tax rates temporary. that creates -- >> you are right on that, anything -- you need sense of consistency, we're not there, you are going to run for president? >> no. neil: i don't believe you. >> based on what i know today, my hair is not on f fire. neil: how are you feeling? >> great, i am looking forward to being a strong voice for the people, i will be replaced neil of. i am still coming on fox if they invite me. >> are you kidding. you have to get a little bit mo in your face, and not be as

shy, you show promise, herman, you might have a future. >> i'm working on it 92 this man, battl stage 4 cancer, cancer, was scared to death of it and left. >> 6 years ago, i just got a clean bill of health, 3 months ago, 6 years totally cancer-free. neil: that is god's way of saying, no way i heck am i dialing with you, congratulations. >> thank you. neil: herman cain, a remarkable story of stuff, down know, should i share that, -- well when we come back, talk about crazy times, only california, where things so bad, public said, go ahead screw to us the wall, taxes on armageddon, they approved not one attack proposition, to raise taxes on rich, they said, you know, while we're at it, why not just stick it to the rest of us in?

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neil: i hope this is not a trend, in california, such a basket case, they just throw anything out there that floats, latest two different propositions and a number of other that call for hiking taxes on anything and everything, one targeted on wealthy. i think 225,000, and over and a separate proposition, why not tax everyone else. i am being simplistic, but in california, they run out of things to cut, so now they cut to the let's raise your taxes. we hava well-known developer,

a key obama fundraiser joining us. i tol don possible els he shoule obama team. good to have you back. neil: race turned out like you said. >> it did, president got reelectioned . >> despite your concern about attacking the rich, which you judged him. that not wit notwithstanding. >> absolutely, i always said this president was running for chief executive officer of the nation, commander in chief. not chief financial officer. neil: now before we get to california, they are taxing puddles next. do you think this obama administration is open to a deal on taxes? or come hell or high water, he is going to argue, look i've been reelected i said one of my

principle points is that taxes should go back up on rich. >> i think that president is one of the smartest peopll i met, he is -- >> really. >> he is a very start man, he is reelected again. he has done a good job in many areas. i think on taxes there will be compromise. neil: like what? >> i think how much. neil: a million not 250. >> it will be higher, and focus on carry interest, which would be a big win for democrats and republicans agree that is a difficult position to defend, a couple things. neil: a lot of things that look extravagant. and you might have a deal? >> yes, and then i think -- >> why can't california do that. >> i known -- have owned

property in california, i now own property in vegas. neil: what is biggest loser? >> it was las vegas, but now it will be a big winner they are taxing people out of california, every time there is a pick quake, they go to las vegas they pay no income tax, and housing cost 80 percent less, they can be in los angeles, or san francisco in an hour, you will see people leaving state of california. neil: it is interesting, those at ground zero locale for real estate, las vegas and florida, you noticed that market picking up, maybe the wind at president's back could be a recovery you kept champions during the campaign. and you think that is real? >> i do, look at, south florida, and history repeats itself, in

early 90s went down the tube first in housing, then bounced back with a international market driven bilat inamerica -- latin america, again south florida down tube, and bounces back, a at peak of recession. there are about only 1,000 unsole development unit, and n development project in the miami-deamiami-dade area. neil: let me ask you. it might surprise that you president won't come on fox. why issue there no more guys like you in the administration

in is that by design he keeps really smart business guys away and would rather have a bunch of academics? >> i think that president wants best and brightest, he was the sensitive -- he was also the president was sensitive to "wall street journal" and those of us in private secto neil: woot? wall street? >> we were persevered to have been a part of this recession, i am happy with the limited role i can play. i'm not the kind of person that could work for anyone else other than the people. neil: her is my f fear about the obama administration. they don't have your open business mind. they talk a good game, you actually mean what you say, here

is high -- i hope i am wrong, he surrounds himself with people who say yes we're interested in business but the language, tone is approach is as antibusiness as you can get. >> i think thathat you have president likes debate internally. what happened though. neil: you don't think he dislikes rich people? >> no. neil: i think he hates them outside of george clooney and barbra streisand. >> the president of the united states respects entrepreneurship. because i believe that president respects me. i am a entrepreneur. gs it. president ran for office with idea of bridge bringing the couy together, he has another chance now. neil: he surrounds himself with

academics, and who have more av an attitude than a background. >> i don't think that this level of progress where we are n in the economy is acceptable to the president, president will make decisions, he is willing to make out of the box decisions. >> you picture bigger things. >> much bigger. neil: i want to see new there. don peebles, a rare bird, both sides respect him, because he is straight shooter, he should stay the humanitarian out of washington -- hell out of washington. >> i don't want to own a home there. neil: when we congress back our small business guys are back with us. what do they think? we have been checking in on we have been checking in on them, after thi this family used capital one venture miles to come home for the holidays. that's double miles you can actually use... sadly, their brother's ite christmas

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neil: one thing i love about having these folks on separately or together is to get an update, throughout the campaign, and the year. how are they doing? average folks, running successful small businesses, trying to make a go of it, but now how do they think it is going with president obama reelected. pretty much status quo in washington, we have mmi public relations patty briguglio. and fellow there is a guy with an uzi machine gun, i am joking, david mccarty, bakery owner.

guys, welcome. patty, how do you feel about the results? what happened? >> oh, man, the stock market falling00 points says it all. neil: one day, patty, you know. >> i sense out e-mails today, asking for small business owners to give me their thoughts, because i was going to be on the show, i got them back, i realized i was going toe on television, and i thi not read them. neil: what are they worried about? >> well, that there will be nothing to stop him now. for next 4 years, he has to pay off the union, so we think car check will come back, then, that you know he is never done anything bipartisan, and so we're don't know what is going to happen, it is the uncertainty, and everyone is talking about they will have to lay people off, we thought that

it would go aware. we thought health care would go away, and it is not. neil: that is to your point. it is fair to say, energ prices stay high go higher, what does that mean to you? >> you heard me say for the last two years, that until fuel prices drop, this economy will never recover. neil: you are so right about that, this is the centerpiece. >> what do we hear in second debate, answer to low fuel prices to go what into a depression or recession. neil: that is right. >> that is right,. neil: you are not seeing anything you want to see. if you have a chance to corner barack obama. you know as patty has, i would recommend not doing to the way patty did it, what would you ask him?

>> well, i would like to set him down with 5 of real people that come into our place. and let them tell him what the high cost of fuel, and food, and high cost of energy, their electric bill, water bill, sewer bill, everything that is gone up in 3 to 4 years, except what? income, until income come up, neil there is no such thing as 3 recovery. gloom and boom. you are looking for ways to reinvent yourself, you can't cut deeper, if the healthcare goes through, companies like ours, we'll be forced to say to our employees, here is the cash, you have to pay taxes on it could find your own plan. neil: you never send my a cake that is okay. >> i can do that. >.>> no, you don't really mean .

>> patty, let's say it all stays same, regulation, but say he does not mess with your taxes, keeps taxing fairly low, maybe closes some loopholes, but that is a little bit better, right? because we just had, a guest on that said he expects more expenditures do you believe that. >> no. think about it, if they extent bush tax cuts for another year, we still do not have any certainty. so, i just need to know what is going to happen to plan. and that is the problem. i need to know. neil: what if i told you, it is not going to get worse? and look what happened. look what happened with bcs beck housing numbers -- bcs beck

better than expected housing numbers, what do you say? >> well, you know, i guess if u are happy with this recovery you are in a different group than i am. you know, i justen to think that we can continue with this kind of a slow recovery. >> you think we'll head back to something b. >> i don't know if back, but we're not getting better. you know, head back if we -- if this tax ar armageddon thing cos on that doom for everyone, but, is the average person, you know content. content. neil: guys, pressed for

seems they haven't been mo. but things are starting to turn around because of business people like you. and regions is here to help. with the experience and service to keep things rolling. from business loans to cash management, we want to be your partner moving forward. so switch to regions. and let's get going. together. so, which supeast 4g lte service would yochoose, based on this chart ? don't rush into it, i'm not looking for the fastest answer. obviously verizon. okay, i have a different chart. going that way, does that make a difference ? look at verizon. it's so much more than the other ones. so what if we just changed the format altogether ? isn't that the exact same thing ? it's prey clear. still sticking with verizon. verizon. more 4g lte coverage than all other networks combined.

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